Games

Hard setback to the purchase of Activision by Microsoft: the United Kingdom says no to the purchase

What seemed like the end of the tunnel with a happy ending for Microsoft and Xbox has become a final goodbye. After the latest movements of those from Redmond, the regulatory bodies seemed more inclined to accept the purchase of Activision Blizzard, especially a CMA that has gone hindering.

today was the appointed day for this British body to give the go-ahead to this acquisition, which would change hands to well-known mobile (and console) franchises such as Candy Crush or Call of Duty, but the opposite has finally happened.

The CMA does not approve the purchase. Microsoft responds.

This regulator of the British market has been sounding strong for a long time because it is one of the organizations that has given the most work to the protagonists of the purchase. One of his last speeches paved the way for Microsoftcommenting that this strategy would be profitable in all scenarioseven if the Redmonds decided to stay exclusive with the ‘Call of Duty’ franchise (CMA says it would not be profitable if they decided to remove it from other platforms).

However, today we have witnessed the final resolution that the CMA just published a few minutes ago. In this, the responsibility they have to protect innovation and competition in the world of video games is alluded to, and that is that according to CMA, the purchase would give Microsoft a some competitive advantage in the game in the cloud. Here Game Pass stands out, the game subscription for consoles and PC that brings some titles to mobile phones using streaming from the cloud.

Let’s remember that on mobiles, we have available some Activision works with a long journey as ‘Call of Duty: Mobile’, and others from King such as the well-known Candy Crush (owned by Activision Blizard). It is therefore a purchase that would affect different platforms where we play: computers, consoles, but also on mobile devices.

XBOX Activision Blizzard

In the same way, CMA also considers the possibility that Microsoft decided increase the price of said subscription. In the words of Martin Coleman (CMA research leader), Microsoft’s proposal to defend the purchase “does not alleviate our concerns and could replace current competition with ineffective regulation in a new and dynamic market.”

The Microsoft’s response has been immediateIn the words of Brad Smith (President since 2021): “We remain fully committed to our acquisition with Activision Blizzard and will appeal today’s determination by the CMA. Here is our statement.” Next, we see an official writing that the Redmond-based company has prepared.

Tweet Xbox CMA Buy Activision

This final ruling is a strong blow to Microsoft despite the fact that the regulatory body is a local authority. Because? Well, this sets a precedent. Predictably, this movement will push other organizations to adopt the same position as CMA. Now, we only have to wait until the next stop to find out what will happen with all this matter: on May 22 it will be the turn of the European Commission.

More information | CMA

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